Despite Wall Street's enthusiasm about them, stock splits are largely non-events for a business. They don't change the underlying value of the company but merely boost the outstanding share count while reducing the per-share price. It's akin to slicing a pizza: You generate more pieces but don't have any more food.

But splits do make a stock more affordable for investors seeking to establish their first position in a company. That's one good reason why demand might rise around a split announcement.

(NYSE: WMT) is a great example. Thanks to a 3-for-1 split in late February, you can buy this dividend giant for around $60 per share instead of nearly $180 a few days earlier. And just a few hundred dollars will allow you to accumulate several shares in this industry-leading retailer.

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Source Fool.com